4 days ago
Powering India's energy future: In conversation with N Venu, MD & CEO, India and South Asia, Hitachi Energy
India's energy sector is undergoing a defining shift, marked by the simultaneous rise of renewable power, infrastructure modernisation, and technological transformation. Amid this transition, Hitachi Energy continues to play a pivotal role in shaping the nation's evolving energy landscape. In this exclusive interview, N Venu, Managing Director & CEO – India and South Asia, Hitachi Energy, outlines the company's strategic roadmap for FY 2025–26, the role of High Voltage Direct Current (HVDC) technology in India's energy transition, and the emerging interplay between transmission and energy storage systems.
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As Hitachi Energy embarks on its journey for FY 2025–26, what innovative strategies are you deploying to ensure sustainable growth while navigating the dynamic energy landscape?
India's energy sector is at an inflection point, with an increasing focus on renewables, grid modernisation, and peak demand management. At Hitachi Energy, we understand the nation's ever-evolving energy landscape. Our deep domain knowledge and global experience, along with impeccable local expertise and execution capabilities, enabled us to gain a competitive edge.
The company will remain steadfast in maintaining its leadership in core segments, including utilities and HVDC, while also establishing and strengthening our presence in industries and high-growth segments like data centres. We continue to enhance our service capabilities and digital prowess to accelerate our growth further.
To address the growing energy needs in the country, we have been expanding our capabilities in a strategic and focused manner over the last four years. On average, we have invested approximately INR 100 crore annually during this period. In FY 2024–25, we also completed the fundraise of INR 2,520.82 crore through our first Qualified Institutional Placement. The proceeds are proposed to be deployed in capacity expansion, working capital (including for mega projects such as HVDC), and other avenues to accelerate growth in our India operations.
Our strategic approach and adaptability to the rapidly changing global economic landscape will help us sustain our growth momentum for FY 2025–26.
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In quick succession, the company secured two major HVDC orders: the Bhadla–Fatehpur and Khavda–Nagpur projects. What is the impact of these orders on existing capacity and the ability to take on other projects?
The gestation period of an HVDC project is close to four to five years. Considering the quantum of work that goes into each HVDC project, timelines are typically spread over a few years, and we can easily deliver within these schedules. Hence, the projects do not overlap or affect the speed of execution.
Over the years, we have also strengthened our production and engineering capabilities, having anticipated the ongoing surge in India's power requirements and the technology needed to accelerate this growth. To meet the growing demand for HVDC and power quality, we inaugurated our advanced power systems factory in Chennai in February 2023.
As pioneers in HVDC technology for over 70 years, we are actively executing and upgrading all forms of HVDC systems. Our ability to handle a comprehensive suite of HVDC solutions enables us to approach projects from a holistic perspective.
Our expertise ensures seamless integration and successful delivery of HVDC projects worldwide. With a highly skilled HVDC team in India, encompassing all disciplines and actively engaged in global projects, execution of specific projects will not be a challenge.
With the growing focus on renewable energy and grid stability, how do you see the ongoing debate on Battery Energy Storage Systems (BESS) as an alternative to High Voltage Direct Current (HVDC) technology in India?
Multiple pathways are required to meet India's ambitious renewable energy targets and ultimately achieve carbon neutrality. There are no shortcuts or singular routes to reaching the mammoth energy goals we have set for ourselves. We should focus on creating an ecosystem where technologies complement each other, not compete.
A recent study shows that approximately 93% of power generation investment is now directed toward clean sources, with solar-plus-storage proving cheaper than coal on a life cycle basis. This shift is evident in ultra mega power projects in solar-rich states like Rajasthan and Gujarat, which require a mix of technologies to efficiently deploy clean energy and maintain grid stability.
On the transmission side, HVDC technology, whether LCC (Line Commutated Converter) and VSC (Voltage Source Converter), remains crucial for reducing transmission losses over long distances, connecting diverse AC grids, and enhancing grid stability, especially with variable renewable energy sources. Storage at the point of generation complements transmission by harnessing high solar irradiance in western states and preventing grid volatility. The Ministry of Power has mandated co-located energy storage systems with 10% of solar plant capacity, a move that truly echoes India's renewable energy ambitions and the need for multiple pathways to achieve carbon neutrality.
With the creation of the new Service Business Unit, how does Hitachi Energy plan to set new benchmarks in service excellence and deliver unparalleled value to its customers?
Worldwide, energy systems have been rapidly expanding to meet the growing demand for clean energy. This has accentuated the need for a safe, reliable, and flexible ecosystem
to inspire the next era of sustainable energy.
To address these dynamic energy requirements, Hitachi Energy is strategically strengthening its service capabilities and portfolio by establishing a new Service Business Unit. With the world's most extensive installed base in transmission and distribution, decades of experience, and established partnerships, Hitachi Energy is strengthening its commitment to supporting customers and partners throughout the life cycle of their energy infrastructure.
In India, we are moving fast to meet our commitments towards renewable energy capacity and have added 30 GW of renewable energy in FY 2024–25. The energy transition is no longer just about sustainability. It's equally about supply security and affordability. Supporting the growth of renewable energy in the country requires a robust HVDC and grid connectivity network that integrates clean energy seamlessly, keeping our long-term growth drivers intact. This will open up further opportunities for service and maintenance across rapidly-expanding grids in the country.
With our new business unit fully operational from April 1, 2025, our immediate focus in India is to tap into the existing INR 82,000 crore installed base we have built over the past 75 years. To maximise our reach, all business units will work closely with Business Unit Service to deliver an end-to-end service portfolio repertoire.
